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Thursday, October 31

31st Oct - Terrible EZ inflation, unemployment

Now the US Treasury is telling Europe that Germany has been wrong. The numbers today from Europe confirm the view.


Previously on MoreLiver’s:

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EUROPE
'Nationalism and xenophobia' on rise ahead of European electionsReuters
European Commission President Jose Manuel Barroso has warned against nationalism, xenophobia and racism ahead of European Parliament elections next year, when anti-EU and protest parties are expected to do well.

Europe’s Elusive Growth ConsensusProject Syndicate
In most European countries, per capita GDP is currently lower than it was six years ago. Worse still, many Europeans appear to have concluded that economic growth does more harm than good in environmental and social terms.

  GERMANY
Report to Congress on International Economic and Exchange Rate PoliciesUS Treasury
Germany’s anemic pace of domestic demand growth and dependence on exports have hampered rebalancing at a time when many other euro – area countries have been under severe pressure to curb demand and compress imports in order to promote adjustment. The net result has been a deflationary bias for the euro area, as well as for the world economy.

The EU would be better led by Angela Merkel and Christine LagardePresseurop
Second-best seems good enough when it comes to deciding on Europe’s top jobs, says Tony Barber.

It’s Not Germany’s Fault Europe Is Turning JapaneseWSJ

A Quick Look at Germany’s Economic Vital StatisticsWSJ

  EUROPEAN CENTRAL BANK
ECB establishes standing swap arrangements with other central banksECB
Central Banks Make Swaps Permanent as Crisis BackstopBB

Euro Gains Seen as ECB Bank Test Sparks Repatriation: CurrenciesBB
The euro, which reached a two-year high versus the dollar this month, is poised to extend its gains as the ECB’s audit of the region’s financial system encourages lenders to repatriate overseas assets.

‘Sharp euro zone inflation drop, record joblessness add to ECB conundrum Reuters
Euro zone inflation dropped sharply to nearly four-year lows in October and unemployment stuck at record highs in September, increasing pressure on the European Central Bank to do more to protect economic recovery.

  INFLATION & EMPLOYMENT
Lower oil prices and stronger euro push inflation down to 0.7% - Nordea
Or read the summary

Euro falls, Bund futures hit two-month high on low inflationReuters

Europe Stuns With "Surprising" Record High Unemployment Print, Inflation At 4 Year Low; Euro TumblesZH

Weak Inflation, Current Account Surplus. Euro Looks More and More Yen-LikeWSJ

Shock low euro zone inflation – what the economists sayReuters
 
Macro Alert: Europe heads towards disinflationTradingFloor
There is a major a shift in European economic data indicating that Europe is heading towards disinflation, which from a policymaker's perspective is the worst of all evils in economics. Europe now has less inflation than Japan. Japanisation is ahead.

Euro area unemployment rate at 12.2% - Eurostat
Euro area annual inflation down to 0.7% - Eurostat

  PIIGS
Mediobanca hints at Italian euro exit unless Germany shifts on EMU policyThe Telegraph
The exchange rate is bringing Italy's worrying matters to a head.

Greece: back in the EM classFT


UNITED STATES
Why the Fed can't taperCoppola Comment

A Bit on the Hawkish SideTim Duy’s Fed Watch
The FOMC statement is slightly on the hawkish side, opening the door to tapering sooner than March. The argument against tapering sooner is that the Fed needs to see both stronger and sustainable data.  But a bias against asset purchases suggests the bar is lower, with just sustainable data needed.

Yalies Yellen-Hamada Put Tobin Twist Theory to Work in QEBB

…MACRO NUMBERS…
Weekly Consumer Comfort Index Tumbles To Lowest Since October 2012 – ZH

Chicago PMI Blows the Door Off Expectations – Bespoke
Chicago PMI Explodes Most On Record To 31-Month High; Biggest Beat Ever – ZH
No shutdown in U.S. Midwest as business activity index surges – Reuters
Chicago PMI up 10.2 to 65.9 in October – ISM
  Barometer highest since March 2011, Production, New Orders, Order Backlogs posted double digit gains


ASIA
BOJ Beat: Five Takeaways from Prices OutlookWSJ
The Bank of Japan Thursday released its latest semiannual outlook on growth and prices.

BOJ Beat: Kuroda Balances Inflation Targets and His BoardWSJ


FINNISH
Eurokriisiä ratkoo uusi miesHS
Tuomas Saarenheimo ei halua joutua samanlaisiin tilanteisiin kuin edeltäjä Martti Hetemäki

Oudot sijoitustemput eläkerahalla jäävät piiloonHS

VM:n Taos: Osakeomistusten julkisuutta edistetään yhäHS

Kuinka kauan musiikki soi? vol.1Nordnet

Kuinka moni naapurisi tienaa vähemmän kuin sinä? Kokeile itse laskurillaYLE
Suomalaisten tulot jakaantuvat yhden postinumeroalueen sisällä usein erittäin epätasaisesti, selviää Yle Uutisten tulotietolaskurista.

Urpilainen: ”Harmaa talous ei ole mielikuvitusta”TE

Saksalaislehti: Suomi on yksi euroalueen "uusista ongelmalapsista"TE

Suomen ulkoministeriö laajan verkkovakoilun kohteena vuosiaMTV3